Two terms that are generating a lot of hype and excitement in the world of business technology right now are Web3 (sometimes called web 3.0) and metaverse—judging by some of the coverage, you would be forgiven for thinking that they refer to the same thing. Actually, although they are related in several important ways, they both describe different concepts. So, let’s take a look at the difference.

The Important Difference Between Web3 And The Metaverse

What are web3 and metaverse?

In simple terms, web3 is the decentralized internet – built on distributed technologies like blockchain and decentralized autonomous organizations (DAO) rather than centralized on servers owned by individuals or corporations.

The idea is that this will create a more democratized Internet. No single entity will control the flow of information or "pull the plug" and kill a network, simply because can as they own the hardware it’s running on. The servers, systems, and networks where applications are run from and where data is stored will, in theory, be owned by the users themselves, who will have voting rights over what rules and regulations are in place, and how they can be used. Why is it called web3? Because it’s thought that it will be the third major evolution of the internet, after the worldwide web (web1) and the user-generated web (web2, or social media).

The metaverse (or just "metaverse"), on the other hand, is really, at the moment, a shorthand for virtual worlds, where users can interact with each other and engage with apps and services in a far more immersive way. The term “metaverse” first appeared in Neal Stephenson’s sci-fi novel Snow Crash, where it described a virtual reality world. Since then, the concept has gone mainstream through books and movies like Ready Player One and The Matrix. Today technology is quickly catching up with science fiction. One survey carried out by Ericsson found that seven out of 10 respondents believe that by 2030 we will be able to enter virtual worlds that appear to be completely real. More generally, the term is used today to refer to any online spaces that strive to create immersive environments, so games like Fortnite, which have been used as a venue for virtual concerts, and Roblox, which offers businesses the chance to build branded worlds, are also considered to be metaverse experiences.

Why do some people think they are the same thing?

There are several reasons that they sometimes get spoken about as if they are the same thing. Firstly, and probably most obviously, is the fact that despite my statements above, no one is really entirely sure exactly what either of them is yet.

Both are very much "under construction" by many different people and organizations who all have different ideas about what they will look like when they're finished. For example, Meta (formerly Facebook) said it would spend at least $10 billion on developing the concept of a metaverse in 2021. But its vision of what the metaverse will be is very different to those who believe the metaverse should be decentralized and outside of the control of big corporations – like Meta.

Secondly, both the decentralized web (web3) and metaverse have been, at one time or another, referred to as "web 3.0" – an identifier used simply to state that they represent the third major iteration of the internet. Google search "web3" now, and most of the results will refer to the concept I described above in the first section of this article. However, some people have described web 3.0 as “the immersive web” – a new generation of the web which is primarily differentiated from what existed previously by its "immersiveness". The metaverse, in other words!

And thirdly, and perhaps most significantly, another reason that they are often conflated with each other is that they cross over in some very important ways. The technology that’s used to build web3 – which includes blockchain, and blockchain-based cryptocurrencies like Bitcoin and Ethereum, and NFTs – unique digital “objects” that are stored on a blockchain – all have huge implications for the way we will make use of the virtual worlds of the metaverse for work, play, socializing and learning.